VISION 2022

PRESENTATION ON SOUTH AFRICAN FOOTBALL

Dr Danny JordaanPresident

What Is SAFA?The largest membership

structure in South AfricaApprox 3 million active football

playersOver 10,000 Clubs and 40,000

teamsFootball played in thousands of schools341 Local Football Associations52 Regions9 Provinces9 national teamsSAFA head office

SA Football In Brief SAFA field offices Nationally: 52

National Teams: 9 (3 Female & 6 Male)

PSL League: 16 Clubs Premier League

NFD League: 16 Clubs - 1st Division

SSD league: 144 Teams - 2nd Division

SAB Regional league: 610 Clubs - 3RD Division

Women’s Provincial League: 144 Teams - Provinces

Women’s Regional League: 624 Teams - Regions

Associate members: 11

“More Than Football”“Largest and most likely to succeed youth development programme in the country” –

Bobby Godsell

Direct impact on 2 million young people currently playing football.Creation of a cadre of 100 000 life skills educators (coaches).Significant and measurable impact on community safety, gender, health, education and development.Significant enterprise development possibilities.Skills transferJob creation

New Structures 2011/2

LEGACY TRUST

• R450 Million• JUNIOR LEAGUES• UNDER 13• UNDER 15 • UNDER17• UNDER19• UNDER23• COACHES,REFERE

ES,• ADMINISTRATORS

MINIMUM TARGET:

R100 Million

DEV. AGENCYINFRASTRUCTURE TRUST

BUILD GRASSROOTS FACILITIES

28 COMPLETED52 REGIONS

Talent Id ProgramU13, U15 Regional, Provincial and National

Tournaments to create Talent Pyramid SAFA accessed funds from FIFA Legacy Trust to establish

U13 and U15 Leagues in each of the 341 Local Football Associations.

In 2013, 290 operating for boys, and 90 for girls. Plans to extend to all LFAs in 2014. From October each year, each LFA selects a best team to

participate in a Regional Tournament. 52 Regional Tournaments throughout the country, for U13

and U15, boys and girls. Average of 900 kids per tournament, or total of 45,000 From this, 52 Regional teams selected to participate in 9

Provincial tournaments 9 Provincial Teams then to play in National tournaments

Outcome – Talent PyramidPyramid for eachage cohort U13, U15boys and girls.

New Structures 2011

LEGACY TRUST INFRASTRUCTURE TRUST

• CREATE JUNIOR LEAGUES

• UNDER -13• UNDER -15 • UNDER-17• UNDER-19• UNDER-23

• COACHES,REFEREES,• ADMINISTRATORS

BUILD GRASSROOTS FACILITIES

28 COMPLETED52 REGIONS

SAFA Structures 2013 - 2016

2013 NEC 2016 NECPRESIDENT3x VICE PRESIDENTS10 x NATIONAL LIST 18 x PROVIN. LIST 1 x VP (NSL)3 x NEC (NSL)4 x WOMEN (CO –OPT)TOTAL 42

PRESIDENT2x VICE PRESIDENTS1 x WOMAN VP10 x NATIONAL LIST 1 x VP (NSL)3 x NSL

Provincial Structures

2013 TO 2014 2015 TO 2016• IDENTIFY PROV. HQs• BUILD INFRASTRUCTURE• UNDER 13, 15 ,17 , 20,23

COMPETITIONS ORGANIZED AT PROVINCIAL LEVEL

• APPOINT PEOs • (PROV. EXECUTIVE

OFFICERS)• APPOINT PROV. COACHES• BUDGET R500,000• ASSIST IN SOURCING

ADDITIONAL FUNDING

AMEND CONSTITUTION TO CREATE PROVINCIAL STRUCTURES

TRANSFER ALL COMPETITIONS AT PROVINCIAL LEVEL TO PROVINCES

ADJUST NATIONAL OFFICE AND NATIONAL BUDGETS ACCORDINGLY

National StructuresNEC 2016 AND BEYOND18 MEMBERS BY 2016CREATE A COUNCIL OF

PROVINCES 20 MEMBERS

(PRESIDENT , CEO+18 MEMBERS)

CREATE COUNCIL OF ASSOCIATE MEMBERS

ALIGN ALL FUNCTIONS ACCORDINGLY

• NEC FOCUSES ON NATIONAL TEAMS AND INTERNATIONAL MATTERS

• DEVELOPMENT DRIVEN BY PROVINCIAL STRUCTURES

• FOCUS ON ROLE OF GOVERNING BODY

• STRENGHTEN TRUSTS AND AGENCY.

• COMMERCIAL

Provinces

Limpopo

Strategic Objectives – International Engagement• Improve the standard of host nation/region’s

play

• Improve organisational capacity

• Improve administrative capacity

• Economic impact

• Socio-political benefits

• Historical legacy

International Program 2013/1415 November – Swaziland vs. Bafana19 November – Bafana vs. Spain 11 Jan 1 Feb 2014 - CHAN in South Africa5 Mar 2014 - Bafana vs. Fifa Top 10 Country Sep Nov 2014 – AFCON 2015 Morocco

Qualifiers Sep Oct 2014 – Bafana vs. Fifa Top 10

CountryNov 2014 – Nelson Mandela Challenge

COSAFA

CAF

FIFA

FIFA

CAN 2013 SOUTH AFRICA

To become an International football powerhouse

Three-dimensional but integrated approach – total vision

– We must believe it is possible and in the best interest of South African football – commitment

– Build partnerships

– Follow through with our objectives and consistently review our international position

• SAFA currently has bids in for the following events:

– U20 FIFA World Cup 2019

– FIFA Congress 2016/17

The 2010 FIFA World Cup™

COUNTRIES HOSTINGDEVELOPING COUNTRIES/ BRICS

BRAZIL 2014 FIFA WORLD CUP 2016 OLYMPICS

RUSSIA 2018 FIFA WORLD CUPQATAR 2022 FIFA WORLD CUP

2018 PYEONGCHANG WINTER OLYMPICS SOUTH KOREA

Distribution of FIFA World Cup Teams

5 – [54 Members]

13 – [53 Members]

3.5 –[35 members

5.5 – [10 Member]

4,5 – [46 members]

0.5 –[11 members]

SAFA Financial Update

• FINANCIAL YEAR – 30 June 2013

Highlights of the 30 June 2013 Highlights of the 30 June 2013 Financial ReportFinancial Report

• Mr Gronie Hluyo - Chief Financial Officer

2013 Income Statement (R million)2013 Income Statement (R million)

Revenue

Expenses

Loss/ Surplus

Reserves - (R million)

Expense Comparison (R million)

Balance Sheet (R million)ASSETS 2013 2012

Fixed assets 77 100

Netcare Investment 19 32

Bafana Trade Mark 5 5

Assets held for resale 5 17

Receivables 26 55

Net Bank and cash 18 -1

Deferred tax - 3

Tax prepaid - 4

TOTAL 150 215

LIABILITIES

Long term loans 8 5

Payables 80 145

Short term loans 24 2

Income in advance 42 21

TOTAL 154 173

RESERVES -4 42

FINANCIAL YEAR 2014

2013/2014 Budgets2013/2014 Budgets

• Annual budget expenses must be balanced to SECURED revenue

• A zero budget approach shall be used for most expenses• Unfunded activities shall not be approved• Review all the elements of our cost-drivers and

– Remove wastages– Strive for efficiencies

Budget 2013/14 Financial YearBudget 2013/14 Financial Year

Expected

Additional Funding

Required Total

INCOME 187 84 271 Committed 187   187 Legacy Fund applications   32 32 Funding to be obtained   52 52

EXPENDITURE 165 84 249 Committed 165   165 Funding depended   84 84

Surplus 22 - 22

FY14 Budget Income Statement ZAR ZAR m ZAR % ZAR %

12 months 12 months 12 months Variance Variance Variance VarianceBudget 2013 /14

Budget 2012 /13 Actual 2012/13 vs Budget vs Budget vs Actual vs Actual

Revenue

Secured

219,024,536

224,690,000

208,130,426 -

5,665,464 -3% 10,894,110 5%

- Sponsorships

147,816,234  

179,700,000

165,945,601   -

31,883,766 -22% -

18,129,367 -11%

- Other

71,208,302  

44,990,000

42,184,825  

26,218,302 37% 29,023,478 69%

Probable

52,000,000

48,400,000 972,200

3,600,000 0% 51,027,800 5249%

- Sponsorships

50,000,000  

38,000,000 972,200  

12,000,000 0% 49,027,800 5043%

- Other

2,000,000  

10,400,000 -   -

8,400,000 0% 2,000,000 0%               

Total Revenue 271,024,536   273,090,000 209,102,626   -2,065,464 -1% 61,921,910 30%

Expenditure

Football

127,812,448   - -   - - - -

Corporate Services

26,988,974 - -   - - - -

Football Business

16,009,894   - -   - - - -

Sub-total

170,811,315

174,300,402

138,552,905  

3,489,087 2% -

32,258,410 -23%

Football Governance

5,374,429

11,026,077

14,129,249

5,651,648 51% 8,754,820 62%

Other Operating Expenses

72,940,415

85,657,235

99,445,824

12,716,820 15% 39,222,230 39%

- Overheads

32,140,415  

37,555,629

49,904,540  

5,415,214 14% 17,764,125 36%

- Salary costs

40,800,000  

48,101,606

49,541,283  

7,301,606 15% 8,741,283 18%Total Expenditure 249,126,159   270,983,715 252,127,978   21,857,555 8% 15,718,640 6%Profit / (Loss) before tax 21,898,377   2,106,285 -43,025,353   24,004,662 1140% 64,923,729 -151%

2013 /14 Budget - Expected (R million)2013 /14 Budget - Expected (R million)

Revenue - (R 271 million)

Expenses - (R 249 million)

CASHFLOWCASHFLOW

IS Cash Flow TotalRevenue

219 - 219Secured 148 - 148Other 71 - 71

0Probable 52 - 52Sponsorships 50 - 50Other 2 - 2

FY 2013 Debtors - 24 24Current cash available - 18 18

Total Revenue 271 42 313

CASHFLOW (continued)CASHFLOW (continued)IS Cash Flow Total

Expenditure

Divisions 249 - 249

FY 2013 Creditors - 31 31

FY 2013 FIFA Legacy Trust Loan - 5 5FY 2013 Accruals - 45 45

249 81 330

Surplus / (Shortfall) 22 -39 -17

Non cash items (depreciation) 18 - 18

Deferred revenue – FIFA Legacy Trust 0 17 1740 -56 -16

Possible additional revenue - 26 26

Surplus / (Shortfall) 40 -30 10

Current Assets Current Assets

• Legacy Trust R 450 m• Sponsorship & Broadcast Revenue R 250 m• SAFA House – Property value R 70 m• Property in Raphael R 4,5 m• Buses & Cars R 15 m• Shares in NetCare R 20 m

• Total Assets in excess of R800 million

Sponsorship StrategySponsorship Strategy

• Revenue is largely secured from the following main sources:1. Broadcast Rights2. Sponsorship Rights 3. Other Stadium Revenues (Branding , Ticketing &

Hospitality)4. Licensing & Merchandising

• The change in SAFA’s Broadcast landscape marks the most significant opportunity to generate new revenue streams going forward.

SponsorshipSponsorship Rights ReviewRights Review

• SAFA has undergone a process to revalue and repackage all its Commercial Rights (i.e.: Current & unsold inventory):

– A summary rights schedule to identify (and keep track of) all sold and unsold inventory and the delivery thereof,

• The Standardisation of all sponsorship rights packages to be offered in the market

• A centralised sponsorship rights clearance house, to manage delivery to all sales partners, keep track of available inventory, protect exclusivity and analyse all future contracts prior to sign-off.

• Ring-fencing of all broadcast rights, inclusive of all agreements with opposing team federations.

• Formation of an internal strategic commercial team

SAFA Sponsorship OpportunitiesSAFA Sponsorship Opportunities

• New proposals to replace Absa

• A revised Year long Nelson Mandela Challenge Package

• New SAFA Suppliers Agreements x 2

• SAFA 2nd Division Naming rights Partner

• A second Premier Women’s Partner (Banyana + Regional League).

• SAFA Referees (Inclusive of all PSL games)

• Supa 10 Women’s Semi- Professional League

• SAFA National Teams (U23 Men's, U20 & U17 Men's & Women's)

• U17, U15, U13 Boys & Girls Youth Leagues & Championship

• Overall co-ordination with SAFA Development Agency in securing direct program funding, CSI and Sponsorship.

• Beach Football & Futsal (National Team and League)

38

SAFA.net

SAFA has embarked on a roll-out of one of the largest ICT implementations in South Africa

Software and third level support from DFBMedien (wholly owned by the DFB – German Football Association)

SAFA.net will connect in one central data-base and football administration system all SAFA structure.

Football.safa.net will further allow SAFA and its partners, to commercialise this data and create new / innovative revenue streams by providing:

A commercialised and monetised Website, Content generation and dissemination of this data, Connectivity to all Regions and LFA’s for centralised ordering of various products &

services – discounted partners benefits, incentives and the subsequent roll-out of potentially the largest loyalty program in SA.

BAFANA BAFANABAFANA BAFANA

EVALUATION DETAILSEVALUATION DETAILS

• Event: Bafana Bafana Live Soccer Matches• Analysis: Audience Analysis• Event Date: 2008-2013• Channels: SABC1, SuperSport3,SuperSport4• Format: Live Television Coverage• Data Source: Telmar (Target – All Adults 15+) For SABC

DSTVi (Target – All Adults 15+) For SuperSport

• Objectives: Provide A Detailed Audience Analysis Of All Bafana Bafana Live Soccer Matches From 2008 Till Date

Bafana Average Audience YOY SABCBafana Average Audience YOY SABC

BAFANA BAFANA ALL GAMES 2013 [All Adults 15+]BAFANA BAFANA ALL GAMES 2013 [All Adults 15+]

TOP SUPERSPORT AUDIENCES – 2012 ALL SPORTSTOP SUPERSPORT AUDIENCES – 2012 ALL SPORTSDAY FROM STATIO

N PLAN TITLE PLAN SHARE # OF VIEWERS

Sun 2047 SUP3 UEFA Euro 2012 Final Spain vs. Italy 39.4 1,429,268Sat 1531 SUP4 Absa PSL Kaizer Chiefs vs. Orlando Pirates 34.8 1,341,830

Wed 2015 SUP4 Absa PSL Kaizer Chiefs vs. Mamelodi Sundowns 33.4 1,286,712Thu 1926 SUP4 London 2012 Olympics Athletics 30 1,283,276Wed 2046 SUP3 International Soccer Portugal vs. Spain 39.8 1,256,904Sat 2016 SUP4 Nedbank Cup Kaizer Chiefs vs. Free State Stars 28.2 1,185,510Sat 2016 SUP4 MTN 8 Pirates vs Ssunited (Semi Leg 2) 25.4 1,175,520

Wed 1931 SUP4 Absa PSL Kaizer Chiefs vs. Bloemfontein Celtic 23 1,175,258Sat 2045 SUP3 UEFA Champions League Final Bayern Munich vs. Chelsea 38.5 1,165,500Tue 1930 SUP4 Absa PSL Kaizer Chiefs vs. Moroka Swallows 21.6 1,154,548Sun 2130 SUP4 AFCON 2012 Final Zambia vs. Ivory Coast 44.3 1,148,984Sat 1532 SUP4 Absa PSL Orlando Pirates vs. Kaizer Chiefs 32.3 1,144,332Sun 1500 SUP3 MTN 8 Kaizer Chiefs vs. Mamelodi Sundowns 29.1 1,126,540Tue 1800 SUP4 Absa PSL SuperSport United vs. Orlando Pirates 22 1,109,556Sat 1800 SUP4 Nedbank Cup Orlando Pirates vs. Free State Stars 23.5 1,101,226Sat 2045 SUP3 UEFA Euro 2012 Spain vs. France (QF) 27.2 1,066,464Sat 1702 SUP1 International Rugby SA vs. England Test 1 21.8 999,810

• Without Exclusivity, Bafana Bafana averaged over 1,5m viewers on SuperSport alone during the 2013 AFCON – Highest audiences to date. SABC numbers also went up!

SAFA TV - WEEKLY MAGAZINE SHOW ON SABC 1SAFA TV - WEEKLY MAGAZINE SHOW ON SABC 1DATE STATION TIME GAMES TOTAL AR TOTAL ADULT AUDIENCE % SHARE

2013/08/03 SABC1 13:29 SAFA TV 2 612,180 13.4

2013/08/10 SABC1 13:29 SAFA TV 2.4 734,616 15.6

2013/08/17 SABC1 12:31 SAFA TV 4.1 1,254,969 22.1

2013/08/24 SABC1 13:29 SAFA TV 2.8 857,052 16.5

2013/08/31 SABC1 13:31 SAFA TV 1.8 550,962 11.8

2013/09/07 SABC1 13:29 SAFA TV 1.9 581,571 11.4

2013/09/14 SABC1 13:31 SAFA TV 3 918,270 16.7

2013/09/21 SABC1 13:29 SAFA TV 2.8 857,052 14.7

2013/09/28 SABC1 13:30 SAFA TV 2.7 826,443 16.2

AVERAGE YTD 2013 799,235

YEAR ON YEAR COMPARISONYEAR ON YEAR COMPARISON

Castle Absa Puma Sasol SA Breweries Tsogo Sun

Jan-Aug 2012 R 23,377,266 R 19,535,922 R 64,290,010 R 13,495,003 R 4,849,082 R 4,732,070

Jan-Aug 2013 R 49,903,787 R 35,223,979 R 115,126,840 R 14,193,737 R 4,135,869 R 7,989,848

% Change 113.5 80.3 79.1 5.2 -14.7 68.8

TOP 30 AWARENESS COMPARISONS - TEAMSTOP 30 AWARENESS COMPARISONS - TEAMS